Gold Price Analysis: XAU/USD pares early gains, turns flat near $1,900
- Gold struggles to make a decisive move in either direction.
- Major European equity indexes trade mixed on Tuesday.
- Eyes on Wall Street, macroeconomic data releases from the US.
For the third straight trading day on Tuesday, the XAU/USD pair is moving sideways above $1,900 as participants wait for the next significant catalyst. After climbing to a daily high of $1,910 earlier in the day, the pair lost its traction and was last seen trading virtually unchanged on the day at $1,902.
Traders remain in a cautious mood
At the start of the week, safe-haven flows dominated financial markets and caused global equity indexes to suffer heavy losses. On Tuesday, major European equity indexes trade mixed, failing to provide a fresh insight into investors' risk perception.
The sharp upsurge witnessed in coronavirus cases in Europe, the uncertainty surrounding Brexit talks and the upcoming presidential election in the US seem to be causing participants to remain on the sidelines.
On the other hand, the greenback is consolidating its gains after outperforming its rivals on Monday. Later in the session, the Durable Goods Orders and the Conference Board's Consumer Confidence Index data will be featured in the US economic docket.
Meanwhile, investors will keep a close eye on Wall Street. Following Monday's sharp decline, a convincing rebound in US stocks could put the USD under additional pressure and help XAU/USD, once again, turn north. However, unless it makes a daily close above $1,910, the pair's upside is likely to remain limited.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
